Status: Proposed Author(s): @Matthew_Graham, @AcceleratedCapital, @PrairieFi Created: 23rd August 2021 Discussion to: https://gov.indexcoop.com/t/iip-87-transfer-fli-products-in-treasury-to-operations-account/2444 Quorum: 109,047 [2,180,940*0.05]

Simple Summary

This proposal seeks to transfer all FLI products within the Treasury to the Operations Account.

Operations Account: ‘0xFafd604d1CC8b6B3B6CC859cF80Fd902972371C1’

Abstract

Currently, the Index Coop Treasury holds over $300K of FLI products and the fee collector contracts have not been called in over 20 days. The TWG recommends calling the fee collector contracts and transferring all FLI products in the Treasury to the Operations Account. FLI products will continue to be transferred from the Treasury to the Operations Account up until when IIP-72 is implemented.

From the Operations Account, the TWG intends to periodically sell all the FLI revenue to ETH. The swap transactions are to be performed soon after being received within the Operations Account. The ETH would remain unused until a subsequent IIP approves authority to use ETH productively or spend on other operating needs.

Motivation

IIP-72 details how future FLI revenue will be deposited into the Operations Account. This proposal is to capture transferring all FLI products from the Treasury to the Operations Account. The reasoning for transferring all FLI products to the Operations Account and selling for ETH is the same as outlined in IIP-72.

At the time of writing, the Treasury holds more than $300K of FLI products and the Fee Collector contracts have not been called in over 20 days (i.e. over 20 days of fees have accrued within the Set vaults).

We believe that holding ETH instead of the FLI products is a prudent risk management decision for Treasury assets.

Specification

Perform the following transactions:

1. Call Fee Collector contracts across all FLI products (anybody can do this)
2. Transfer FLI products from the Treasury wallet to the Operations Account (Treasury Multisig Signers)
3. Sell all FLI products for ETH (TWG Operations Account Signers)

These transactions are to be performed Monday 30th August or Tuesday 31st August which coincides with month-end reporting.

The above steps are to be repeated until such time as the fee revenue from the FLI products is rerouted to the Operations Account as per IIP-72.

Operations Account: ‘0xFafd604d1CC8b6B3B6CC859cF80Fd902972371C1’

EDIT: Due to the fact that the dates above have already passed, the transactions will take place in early October instead of the dates stated above.

Voting

FOR: DO call Fee Collector contracts and transfer all FLI and future FLI product revenue received in the Treasury to the Operations Account. FLI products are to then be exchanged for ETH by the TWG.

AGAINST: DO NOT change the existing arrangement and allow FLI products to remain within the Treasury.

Copyright

Copyright and related rights waived via CC0.